Currencies Update

And…Once Again!

(25-01-2008 12:30 GMT) Headlines in the market are again the rebound in world equities and the coming back of risk appetite this fundamental quiet day, investors took the advantage to move the market as there are still no influencing data, and their incentive was driven by the drafted out fiscal stimulus that will help the US economy abide recession.

The euro is trying to build up its solid base above $1.47s to then be able to head once more to its upside set targets breaching by that the long awaited $1.50 levels, now the weak American eagle has helped set the path the one left is European fundamentals; the euro lost some of its upside vigor keeping the high intact at 1.4777 in the Asian session to set the low at 1.4697 and now trading around 1.4720s.

The royal currency has bounced from very low levels seen at around 1.9330s after entering oversold areas; the pound started the day trading above $1.97 the pound fetched a high of $1.9846 and a low of $1.9743. The pound was supported by the stance seen from the BoE as it dismissed any chance in the market of substantial easing as elevated inflationary levels will confine their ability to mitigate economic slowdown as they now must start drafting their contingent plan.

The Japanese yen was driven to weaken today on wake of carry trades comeback as investors took the advantage ahead of key US data next week that they fear might confirm a recession. The pair traded within the upside channel to set the high at 107.88 while the lowest was set at 106.84.

The day is still not over as the US markets join the flow in a few and then the scenario might differ as well to squaring positions ahead of the weekend so stay tuned the week has yet come to an end…